The January 1, 2019, Balance in the Prepaid Insurance Account $$\begin{array} { | r | r | } \hline \text { Pr. Insurance Expense } & 1,575 \\\hline \text { Cr. Prepaid Insurance } & 1,575 \\\hline\end{array}$$

question 10

Multiple Choice

The January 1, 2019, balance in the Prepaid Insurance account was $3,150 and represented the unexpired portion of a two-year policy purchased October 1, 2018. What is the required year-end adjusting journal entry on December 31, 2019?

• A) \[\begin{array} { | r | r | }
• \hline \text { Pr. Insurance Expense } & 1,575 \\
• \hline \text { Cr. Prepaid Insurance } & 1,575 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | c | }
• \hline \text { Pr. Insurance Expense } & 1,800 \\
• \hline \text { Cr. Prepaid Insurance } & 1,800 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | c | }
• \hline \text { Dr. Prepaid Insurance } & 1,575 \\
• \hline \text { Cr. Insurance } & 1,575 \\
• \text { Expense } & \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | l | }
• \hline \text { Dr. Prepaid Insurance } & 3,150 \\
• \hline \text { Cr. Insurance } & \\
• \text { Expense } & 3,150 \\
• \hline
• \end{array}\]

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Definitions:

Criterion Validity

Criterion validity refers to the extent to which a measure is related to an outcome.

Instrument Design

The process of creating tools or systems for specific purposes, often involving considerations of functionality, user experience, and efficiency.

Salary Increase

An upward adjustment to an employee's base compensation as a reward for performance, promotion, or inflation adjustments.

Field Experiment

An empirical study conducted in real-world settings outside of the laboratory to observe and analyze the effects of variables in their natural context.